The Impact of Fluctuating Oil Revenues on Economic Growth: New Evidence from Saudi Arabia
The fluctuations that occur in oil revenues are among the main reasons that lead to disruptions in economies that depend on them. Hence, this study aims to find out the impact of fluctuation in oil revenues on the economic growth for the Kingdom of Saudi Arabia during the period from 2000 to 202...
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| Format: | Article |
| Language: | English |
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EconJournals
2024-01-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/14527 |
| _version_ | 1827380030716510208 |
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| author | Sultan Yahya Abbas Natto |
| author_facet | Sultan Yahya Abbas Natto |
| author_sort | Sultan Yahya Abbas Natto |
| collection | DOAJ |
| description |
The fluctuations that occur in oil revenues are among the main reasons that lead to disruptions in economies that depend on them. Hence, this study aims to find out the impact of fluctuation in oil revenues on the economic growth for the Kingdom of Saudi Arabia during the period from 2000 to 2020. The study showed that the relationship between the fluctuations of oil revenues and economic growth may be either a positive relationship, and this relationship is confirmed in oil-exporting countries, which is the most common relationship, or a negative relationship, and this relationship is confirmed in oil-importing countries, which is the exceptional case. In order to find out the direction of this relationship in the Kingdom, the study used the application of the Autoregressive Distributed Lag Model (ARDL) model. The study concluded that the fluctuations of oil revenues has significant positive effects on the economic growth of the Kingdom of Saudi Arabia in the short and long terms. Therefore, the study recommends the need for the Kingdom to exploit these revenues in areas that achieve a return for it at the present time and in the future, in a manner that guarantees the diversification of the economy and its non-disruption when any disturbances occur in these revenues, as well as keeping part of these revenues in its sovereign fund to guarantee the rights of future generations.
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| first_indexed | 2024-03-08T13:27:41Z |
| format | Article |
| id | doaj.art-8bd3407e27a44a5fb854a4972a1bb353 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-03-08T13:27:41Z |
| publishDate | 2024-01-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-8bd3407e27a44a5fb854a4972a1bb3532024-01-17T14:43:00ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532024-01-0114110.32479/ijeep.14527The Impact of Fluctuating Oil Revenues on Economic Growth: New Evidence from Saudi ArabiaSultan Yahya Abbas Natto0Department of Economic, College of Islamic Economy and Finance, UMM Al Qura University, Saudi Arabia The fluctuations that occur in oil revenues are among the main reasons that lead to disruptions in economies that depend on them. Hence, this study aims to find out the impact of fluctuation in oil revenues on the economic growth for the Kingdom of Saudi Arabia during the period from 2000 to 2020. The study showed that the relationship between the fluctuations of oil revenues and economic growth may be either a positive relationship, and this relationship is confirmed in oil-exporting countries, which is the most common relationship, or a negative relationship, and this relationship is confirmed in oil-importing countries, which is the exceptional case. In order to find out the direction of this relationship in the Kingdom, the study used the application of the Autoregressive Distributed Lag Model (ARDL) model. The study concluded that the fluctuations of oil revenues has significant positive effects on the economic growth of the Kingdom of Saudi Arabia in the short and long terms. Therefore, the study recommends the need for the Kingdom to exploit these revenues in areas that achieve a return for it at the present time and in the future, in a manner that guarantees the diversification of the economy and its non-disruption when any disturbances occur in these revenues, as well as keeping part of these revenues in its sovereign fund to guarantee the rights of future generations. https://econjournals.com/index.php/ijeep/article/view/14527Oil Revenues, Economic Growth, Saudi Arabia |
| spellingShingle | Sultan Yahya Abbas Natto The Impact of Fluctuating Oil Revenues on Economic Growth: New Evidence from Saudi Arabia International Journal of Energy Economics and Policy Oil Revenues, Economic Growth, Saudi Arabia |
| title | The Impact of Fluctuating Oil Revenues on Economic Growth: New Evidence from Saudi Arabia |
| title_full | The Impact of Fluctuating Oil Revenues on Economic Growth: New Evidence from Saudi Arabia |
| title_fullStr | The Impact of Fluctuating Oil Revenues on Economic Growth: New Evidence from Saudi Arabia |
| title_full_unstemmed | The Impact of Fluctuating Oil Revenues on Economic Growth: New Evidence from Saudi Arabia |
| title_short | The Impact of Fluctuating Oil Revenues on Economic Growth: New Evidence from Saudi Arabia |
| title_sort | impact of fluctuating oil revenues on economic growth new evidence from saudi arabia |
| topic | Oil Revenues, Economic Growth, Saudi Arabia |
| url | https://econjournals.com/index.php/ijeep/article/view/14527 |
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